(Added to NAC by Comm’n on Econ. Development by R046-06,
eff. 6-28-2006)

NAC 231.011“Economic development” defined. (NRS 231.155)“Economic
development” means the process of furthering the development of regional
economies in the State of Nevada through the use, singularly or in combination,
of the methods that practitioners of economic development generally accept.
These methods include, without limitation, the diversification of the economy,
the development and support of entrepreneurs, the development and support of
business leaders, the education and training of the workforce and the
establishment of programs for the development of a community.

(Added to NAC by Comm’n on Econ. Development by R046-06,
eff. 6-28-2006)

1. Has registered with the Office of the
Secretary of State as a nonprofit corporation pursuant to chapter 82 of NRS; and

2. Is exempt from federal income tax
pursuant to 26 U.S.C. § 501.

(Added to NAC by Comm’n on Econ. Development by R046-06,
eff. 6-28-2006)

NAC 231.053Certification of businesses for certain benefits: “Consistent
with the State Plan for Economic Development” interpreted. (NRS 231.139)For the
purposes of NRS 231.139, a
business is “consistent with the State Plan for Economic Development” if:

1. The business being considered for the
benefits provided pursuant to NRS
704.223 is the type of business that is consistent with the current goals
of the Office concerning industrial development and diversification, as
evidenced by the Office’s certification of the business;

2. The average hourly wage paid by the
business to its employees in this State is at least equal to the average
statewide industrial hourly wage as established by the Employment Security
Division of the Department of Employment, Training and Rehabilitation on July 1
of each fiscal year;

3. The business provides a health insurance
plan for all employees that includes, without limitation, an option for health
insurance coverage for dependents of employees;

4. The business is registered pursuant to
the laws of this State or the applicant commits to obtain a valid business
license and any other permit required by the state, county, city or town in
which the business operates;

5. The business has:

(a) Obtained a statement from the governing body of
the affected county, school district and city, if applicable, that is signed
and dated, indicating that the county, school district or city acknowledges the
possibility of the business obtaining the benefits provided pursuant to NRS 704.223 if the Office certifies
the business; and

(b) Provided a copy of the statement described in
paragraph (a) to the Office;

6. If the business is applying for an
abatement pursuant to paragraph (a) of subsection 1 of NRS 701A.210, the business agrees
to provide the Office, at its request, with proof that the business is in
compliance with the provisions of that paragraph; and

7. The business has executed an agreement
with the Office that grants the Office the right to review any document which
the Office determines is necessary to verify the eligibility of the business
for the benefits provided pursuant to NRS
704.223.

(Added to NAC by Comm’n on Econ. Development by R145-07,
eff. 4-17-2008)

1. “Intermediate product” means any product
that has been processed from its initial raw material stage, but has not yet
been made into its final form;

2. “Raw material” means material before it
is manufactured into a final form; and

3. “Recycle on-site” means to take a raw
material or an intermediate product and physically transform that material or
product into its final form on the manufacturing site.

(Added to NAC by Comm’n on Econ. Development, eff. 9-5-97)—(Substituted
in revision for NAC 231.020)

Grants to Assist Projects of Economic Diversification in
Certain Counties

NAC 231.100Definitions. (NRS 231.065)As used
in NAC 231.100 to 231.135,
inclusive, unless the context otherwise requires, the words and terms defined
in NAC 231.105 and 231.110
have the meanings ascribed to them in those sections.

(Added to NAC by Comm’n on Econ. Development by R047-06,
eff. 6-28-2006)

NAC 231.105“County with an economy subject to dramatic fluctuations because
of a dependence on mining” defined. (NRS
231.065)“County
with an economy subject to dramatic fluctuations because of a dependence on
mining” means a county where data from the last decennial census or special
census conducted by the Bureau of the Census of the United States Department of
Commerce indicate that the mining industry is one of the top two employers in
the county.

(Added to NAC by Comm’n on Econ. Development by R047-06,
eff. 6-28-2006)

(Added to NAC by Comm’n on Econ. Development by R047-06,
eff. 6-28-2006)

NAC 231.115Applications for grant. (NRS
231.065)

1. To receive a grant to assist a project of
economic diversification in a county with an economy subject to dramatic
fluctuations because of a dependence on mining, an entity must:

(a) Be a political subdivision of the State or a
local or regional organization for economic development; and

(b) Submit an application to the Office on a form
prescribed by the Executive Director.

2. If an applicant is a nonprofit private
entity, the applicant must include with the application:

(a) The most recent audit of the books and records
of the applicant; and

(b) A letter from the board of county commissioners
of the county in which the project is located. This letter must state that:

(1) The board of county commissioners approves
of and supports the project that the applicant will fund with money from the
grant; and

(2) The resources of the county will be
available to provide for the financial administration of the grant money if the
applicant, the Office or the board of county commissioners requests that the
county provide for the financial administration of the grant money.

3. The Office will accept applications at
any time, except the Office will not accept an application submitted on a date
in a fiscal year after which the Office has spent or committed for expenditure
the entire amount of money appropriated by the Legislature for that fiscal year
for grants to assist projects of economic diversification in counties with
economies subject to dramatic fluctuations because of a dependence on mining.

(Added to NAC by Comm’n on Econ. Development by R047-06,
eff. 6-28-2006)

NAC 231.120Eligibility for grant. (NRS
231.065)A
political subdivision of the State or a local or regional organization for
economic development is eligible for a grant to assist a project of economic
diversification in a county with an economy subject to dramatic fluctuations
because of a dependence on mining if the political subdivision or organization:

2. Seeks the grant for the purpose of
funding a project of economic diversification in a county with an economy
subject to dramatic fluctuations because of a dependence on mining;

3. Has matched or will match funds for the
project in the form of cash only and in an amount equal to at least four times
the amount of the grant the political subdivision or organization is
requesting; and

4. Will not use the grant to fund a project
of economic diversification in a county that qualifies for funding from the
Economic Development Administration of the United States Department of
Commerce.

(Added to NAC by Comm’n on Econ. Development by R047-06,
eff. 6-28-2006)

NAC 231.125Agreement with Office. (NRS
231.065)

1. If the Office approves an application for
a grant to assist a project of economic diversification in a county with an
economy subject to dramatic fluctuations because of a dependence on mining, the
entity receiving the grant must enter into an agreement with the Office. The
agreement must specify:

(a) The amount of the grant;

(b) The proper use of the money obtained from the
grant;

(c) The date on which the Office approved the
grant;

(d) The specific benchmarks of performance by which
the Office and the recipient of the grant will measure the progress of the
project;

(e) A requirement that the recipient of the grant
report to the Office on a quarterly basis and that the report include a
statement of:

(1) The specific benchmarks of performance
mentioned in paragraph (d);

(2) The progress that the recipient of the
grant has made toward the completion of the specific benchmarks of performance;

(3) The expected dates by which the recipient
of the grant will complete the specific benchmarks of performance; and

(4) The amount of money the recipient expects
to draw from the grant and the dates on which the recipient of the grant
expects to draw money from the grant;

(f) The right of the Office or its designee to
review any document which the Office or its designee determines is necessary
for the appropriate fiscal oversight of the project; and

(g) The date on which the grant will end.

2. The Executive Director and the Office of
the Attorney General shall review the form of the agreement entered into by the
Office and the recipient of the grant pursuant to subsection 1. No agreement
will take effect unless the Executive Director and the Office of the Attorney
General approve the form of the agreement.

(Added to NAC by Comm’n on Econ. Development by R047-06,
eff. 6-28-2006)

NAC 231.130Disbursement of money from grant.
(NRS 231.065)

1. The Executive Director may not disburse
any money from the grant until:

(a) The recipient of the grant and a representative
of the Office have signed the agreement required by NAC
231.125; and

(b) The Executive Director has received a request
to draw money from the grant from the recipient of the grant.

2. The recipient of the grant must make a
request to draw money from the grant on a form prescribed by the Executive
Director. The request must include:

(a) A statement of the amount of money the
recipient wants to draw from the grant;

(b) A statement of the dates on which the recipient
of the grant wants to draw money from the grant;

(c) A statement of the amount of money the
recipient of the grant wants to draw from the grant on each date that the
recipient of the grant wants to draw money from the grant; and

(d) Evidence of the expenses incurred by the
recipient of the grant during the course of the project. This evidence
includes, without limitation, copies of contracts, receipts or invoices.

3. The Executive Director shall review and
either approve or deny a request to draw money from the grant within 10 working
days after the date on which the Executive Director receives the request.

4. If the Executive Director approves a
request to draw money from the grant, the Executive Director shall cause a
check to be issued to the recipient of the grant in the amount requested by the
recipient.

5. If the Executive Director denies a
request to draw money from the grant, the Executive Director shall provide the
recipient who made the request with a written statement:

(a) Stating the reason for the denial of the
request; and

(b) Describing any actions the recipient must take
to receive approval of the request from the Executive Director.

(Added to NAC by Comm’n on Econ. Development by R047-06,
eff. 6-28-2006)

NAC 231.135Failure to comply with agreement.
(NRS 231.065)If
the Office finds that the recipient of the grant is not using money from the
grant in accordance with the provisions of the agreement set forth in NAC 231.125, the Office will immediately cease
providing the recipient with money from the grant and the Office may, in its
sole discretion, determine that the agreement is void.

(Added to NAC by Comm’n on Econ. Development by R047-06,
eff. 6-28-2006)

1. The Office will certify as a local
emerging small business a business that satisfies the requirements set forth in
this section and NRS 231.1405
and 231.14055.

2. To obtain certification as a local
emerging small business, a business must:

(a) Submit a complete application to the Office on
a form prescribed and provided by the Office.

(b) Attest on the application that the business
satisfies the criteria to be certified as a local emerging small business, as
set forth in NRS 231.1405.

(c) Submit to the Office the documentation required
by the Office to establish that the business satisfies the criteria set forth
in NRS 231.1405.

3. A business may submit to the Office an
application to obtain certification as a local emerging small business and the
supporting documentation required by subsection 2 by using the Office’s online
application process or by mail or in person at the address provided on the
application form.

4. Upon receipt of a complete application,
the Office will review the application and supporting documentation submitted
by the applicant and determine whether the applicant satisfies the requirements
to obtain certification as a local emerging small business, as set forth in
this section and NRS 231.1405
and 231.14055.

5. The Office may delay or deny the
certification of an applicant for certification as a local emerging small
business if the applicant fails to disclose information required by the
application or submits a materially incomplete application.

6. The Office will provide each applicant
for certification as a local emerging small business written notification of
its determination pursuant to subsection 4 within 90 days after receipt of the
application.

(Added to NAC by Office of Economic Dev. by R102-13,
eff. 12-23-2013)

NAC 231.205Certification: Interpretation of certain requirements for
eligibility. (NRS
231.1405, 231.1408)For the
purpose of determining whether a business satisfies the criteria for
certification as a local emerging small business, as set forth in NRS 231.1405, the Office
interprets the requirement that a business:

1. Maintain its principal place of business
in this State to mean that the address identified on the state business license
of the business must be a physical address located in this State.

2. Be operated for profit to mean that the
normal business operations of the business are intended to earn a profit and
that the income or profit of the business is distributable to its owners or
shareholders.

(Added to NAC by Office of Economic Dev. by R102-13,
eff. 12-23-2013)

NAC 231.210Certification: Interpretation of certain terms used to determine
designation as a tier 1 or tier 2 firm. (NRS 231.1405, 231.1408)For the
purpose of determining whether a business satisfies the criteria for
certification as a tier 1 firm or a tier 2 firm pursuant to NRS 231.1405, the Office:

1. Interprets the term “annual gross receipts”
to mean the total amount of sales by the business during a fiscal year as
reported on the business’s federal income tax return.

2. Will determine that a business is
“involved in providing construction services” if the business:

(a) Is a person who is licensed pursuant to chapter 624 of NRS and who provides
labor, materials, equipment or supplies for the construction, repair or
reconstruction of any building, highway, road, railroad, excavation or other
structure, project, development or improvement; or

(b) Employs as an employee of the business a design
professional as defined in NRS
338.010.

3. Will determine that a business is
“involved in the sale of goods” if the business sells goods as defined in NRS 104.2105.

1. A certification as a local emerging small
business is valid until 2 years after the last day of the month in which it is
issued or renewed, unless the certification is renewed.

2. Not less than 60 days before the
expiration of the certification of a local emerging small business, the Office
will send to the local emerging small business a written notice of the
expiration of the certification and an affidavit on a form prescribed by the
Office which the local emerging small business may complete and return to the
Office to renew its certification. The failure of a local emerging small
business to receive a notice does not excuse it from the requirement to comply
with the provisions of subsection 3.

3. To renew its certification, a local
emerging small business must submit to the Office, at least 10 days before the
expiration of the certification, the completed affidavit provided by the Office
pursuant to subsection 2 and all supporting documentation required by the
Office to establish that the local emerging small business continues to satisfy
the criteria set forth in NRS
231.1405. The affidavit and documentation required by this subsection may
be submitted to the Office through the Office’s online renewal process or by
mail or in person to the address identified on the affidavit.

4. If a local emerging small business
submits an affidavit and all supporting documentation required by the Office at
least 10 days before the expiration date of the certification, the
certification of the local emerging small business is valid until the Office
determines whether the local emerging small business satisfies the requirements
for certification set forth in NRS
231.1405. The Office will determine whether to renew the certification
within 90 days after receiving a request for renewal.

5. The Office may delay or deny the renewal
of a certification as a local emerging small business if the local emerging
small business fails to comply with the requirements of this section.

(Added to NAC by Office of Economic Dev. by R102-13,
eff. 12-23-2013)

NAC 231.220Applicant for certification and certified business required to
notify Office of change to certain information.
(NRS 231.1408)An
applicant for certification as a local emerging small business and each local
emerging small business certified by the Office shall notify the Office of any
change in its business address, electronic mail address or telephone number and
of any other change which may affect its eligibility to be certified as a local
emerging small business.

1. Any individual, firm or agency who
believes that a local emerging small business does not satisfy the criteria to
be certified as a local emerging small business, as set forth in NRS 231.1405 and 231.14055 and NAC 231.200, may file a complaint with the Office.

2. Upon receipt of a complaint, the Office
will investigate the allegations made in the complaint.

3. The Executive Director shall appoint a
panel of three individuals who must not be employees of the Office to review
the information, documentation and other materials obtained during the Office’s
investigation and to make a determination of whether the local emerging small
business that is the subject of the complaint satisfies the criteria to be
certified as a local emerging small business.

4. The Office will issue to the complainant
and the local emerging small business that is the subject of the complaint
written notice of the determination of the panel appointed pursuant to
subsection 3.

5. The Office may revoke the certification
of a local emerging small business if the panel appointed pursuant to
subsection 3 determines that the local emerging small business does not satisfy
the criteria to be certified as a local emerging small business, as set forth
in NRS 231.1405 and 231.14055 and NAC 231.200.

1. The Office may conduct investigations to
determine whether a local emerging small business satisfies the criteria to be
certified as a local emerging small business, as set forth in NRS 231.1405 and 231.14055 and NAC 231.200.

2. The Office may revoke the certification
of a local emerging small business if the Office determines that the local
emerging small business does not satisfy the criteria to be certified as a
local emerging small business, as set forth in NRS 231.1405 and 231.14055 and NAC 231.200.

1. For the purposes of the reports required
to be submitted to the Office pursuant to NRS 332.201, 333.177 and 338.1427, the Office interprets
the term “solicited to submit a bid or proposal” to mean issuing an invitation
to participate in a bid or proposal for a local purchasing contract, state
purchasing contract or contract for a public work, as applicable.

2. As used in this section, “contract for a
public work” means a written contract between a contractor and a public body
for the provision of labor, materials, equipment or supplies for a public work
and a written contract between a design professional and a public body who is
not a member of a design-build team for the provision of services in connection
with a public work. As used in this subsection, “contractor,” “design-build
team,” “design professional,” “public body” and “public work” have the meanings
ascribed to them in NRS 338.010.

1. The Office will meet with authorized
representatives of the Purchasing Division of the Department of Administration
and the State Public Works Division of the Department of Administration to
receive input and provide advice concerning the establishment and achievement
of the goals required to be established pursuant to subsection 1 of NRS 231.1407.

2. The Office will meet with authorized
representatives of the governing body of each local government in a county
whose population is 100,000 or more to receive input and provide advice
concerning the establishment and achievement of goals for the award of local
purchasing contracts and contracts for public works of the local government to
local emerging small businesses.

(Added to NAC by Office of Economic Dev. by R102-13,
eff. 12-23-2013)

GRANTS FOR REGIONAL COMMERCIAL AIR SERVICE

NAC 231.500Definitions. (§ 13 of ch. 345,
Stats. 2007)As
used in NAC 231.500 to 231.550,
inclusive, unless the context otherwise requires, the words and terms defined
in NAC 231.505 to 231.520,
inclusive, have the meanings ascribed to them in those sections.

NAC 231.520“Grant” defined. (§ 13 of ch.
345, Stats. 2007)“Grant”
means an amount of money awarded to a small airport pursuant to NAC 231.500 to 231.550,
inclusive, from money appropriated to the Commission for that purpose pursuant
to section 13 of chapter 345, Statutes of Nevada 2007.

1. To receive a grant, a local government
applying for a grant for an airport within the jurisdiction of the local
government must comply with the criteria and guidelines established by the
Commission and apply using a form prescribed by the Commission.

2. The application must include, without
limitation:

(a) A reasonable business plan for using the grant,
if the application is approved, which includes reasonable cost estimates;

(b) A commitment from an air carrier and the
airport which indicates that, if the grant is awarded to the local government,
the air carrier and the airport will enter into a written operating agreement
with the local government requiring the air carrier to commence or continue air
service to the airport;

(c) The cost and terms of the operating agreement
between the local government, the airport and the air carrier;

(d) The amount of the contribution and the manner
in which the contribution from the airport or the local government will be paid
pursuant to NAC 231.535; and

(e) The amount of the grant for which the local
government is applying.

3. The Commission will evaluate each
application for a grant in accordance with the criteria and guidelines
specified by the Commission pursuant to subsection 1.

4. In reviewing an application for a grant,
the Commission will give additional consideration to:

(a) An applicant who has an operating agreement
with another airport in this State or who has applied or is eligible to apply
for a grant pursuant to any federal law or regulation; or

(b) An air carrier offering intrastate service.

5. Each applicant is solely responsible for
soliciting, reviewing and selecting a regional air carrier for inclusion in the
application.

6. The Commission will consider and approve
or disapprove applications for grants at regularly scheduled meetings of the
Commission.

7. The airport and the local government must
concur in the application and present the application to the Commission
together.

8. If an application is approved, the
applicant is responsible for ensuring the provision of regional air service and
the specified level of air service.

(Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

NAC 231.530Eligibility for grant. (§ 13 of
ch. 345, Stats. 2007)

1. To be eligible for a grant, an airport
within the jurisdiction of a local government applying for a grant:

(a) Must be a commercial service airport that does
not have more passenger boardings on an annual basis than a small hub airport;

(b) Must be certified by the Federal Aviation
Administration pursuant to 14 C.F.R. Part 139;

(c) Must be located more than 150 miles from a
medium hub airport or a large hub airport; and

(d) Must demonstrate to the Commission, through the
applicant, that air carriers charge unreasonably high fares to service the
airport or provide insufficient service to the airport.

2. As used in this section, the terms
“commercial service airport,” “large hub airport,” “medium hub airport,”
“passenger boardings” and “small hub airport” have the meanings ascribed to
them in 49 U.S.C. § 47102.

(a) Guarantee that an air carrier will receive an
agreed amount of revenue for each flight that the air carrier operates in or
out of the airport; or

(b) Guarantee an amount of profit for an air
carrier that is established by an agreement between the air carrier and the
airport.

2. A recipient of a grant must use the grant
to pay 80 percent of the cost of the guarantee set forth in the operating
agreement between the local government, the airport and the air carrier. Except
as otherwise provided in subsection 3, the remaining 20 percent of the cost of
the guarantee must be paid by the airport or the recipient of the grant. The
contribution to the cost of the guarantee from the airport or the local
government must be in the form of money or in kind, or both. An in-kind
contribution may be in the following forms:

(a) A waiver or reduction in favor of the air
carrier, based on reasonable and customary rates for the following:

(1) Airport rental fees;

(2) Landing fees;

(3) Fees for supporting the operations of the
air carrier; or

(4) Any other airport charges or taxes; or

(b) Marketing and advertising services provided by
the airport or the local government to the air carrier.

3. All or any portion of the contribution
required pursuant to subsection 2 may be provided through the recipient of the
grant by a connecting airport or any other business entity receiving a benefit
from any air service subsidized pursuant to NAC 231.500
to 231.550, inclusive.

(Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

NAC 231.540Agreement with Commission. (§ 13
of ch. 345, Stats. 2007)

1. If the Commission approves an application
for a grant, the recipient of the grant must enter into an agreement with the
Commission. The agreement must specify:

(a) The amount of the grant;

(b) The proper use of the money obtained from the
grant;

(c) The date on which the Commission approved the
grant;

(d) The specific indicators of performance by which
the Commission and the recipient of the grant will measure the progress of the
project;

(e) A requirement that the recipient of the grant
report to the Commission on a quarterly basis and that the report include a
statement setting forth:

(1) The specific indicators of performance
specified in paragraph (d);

(2) The projected estimates of costs; and

(3) The amount of money the recipient expects
to draw from the grant and the dates on which the recipient expects to draw
money from the grant;

(f) The right of the Commission or its designee to
review any document which the Commission or its designee determines is
necessary for the appropriate fiscal oversight of the project; and

(g) The date on which the grant will expire.

2. The Director and the Office of the
Attorney General shall review the form of the agreement entered into by the
Commission and the recipient of the grant pursuant to subsection 1.

3. An agreement entered into pursuant to
subsection 1 is not effective unless the Director and the Office of the
Attorney General approve the form of the agreement.

(a) The recipient of a grant and a representative
of the Commission have signed the agreement required pursuant to NAC 231.540; and

(b) The Director has received a request to draw
money from the grant from the recipient of the grant pursuant to subsection 2.

2. The recipient of a grant must make a
request to draw money from the grant on a form prescribed by the Director. The
request must include:

(a) A statement specifying the amount of money the
recipient wishes to draw from the grant; and

(b) Evidence of the performance and the calculation
of the grant.

3. The recipient of a grant may request an
initial advance of not more than 20 percent of the amount of the grant.

4. If the Commission awards a grant to a
recipient and, after the recipient receives a disbursement of the grant
pursuant to this section, the Commission determines that the recipient no
longer needs the grant or any portion of the grant, the Commission may:

(a) Require the Director to cease making any
further disbursements of the grant to the recipient of the grant; or

(b) Require the recipient of the grant to repay any
unused portion of the grant.

5. The Director shall review and approve or
deny a request to draw money from a grant within 10 working days after the date
on which the Director receives the request.

6. If the Director approves a request to
draw money from a grant, the Director shall cause a check to be issued to the
recipient of the grant in the amount requested by the recipient.

7. If the Director denies a request to draw
money from a grant, the Director shall provide the recipient who made the
request with a written statement:

(a) Stating the reason for the denial of the
request; and

(b) Describing any actions the recipient must take
to receive approval of the request from the Director.

(Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

NAC 231.550Failure to comply with agreement.
(§ 13 of ch. 345, Stats. 2007)In addition to any money required to be
repaid pursuant to NAC 231.545, if the Commission
finds that the recipient of a grant is not using money from the grant in
accordance with the provisions of the agreement entered into pursuant to NAC 231.540, the Commission will immediately cease
providing the recipient with money from the grant and may determine that the
agreement is void. If the Commission finds that money from the grant is not
used in accordance with the agreement, the Commission may require the repayment
of the grant or any portion of the grant.